Cheesecake Factory (NASDAQ:CAKE) Stock Bumped Down to “Hold” by Zacks Research

Posted by George Bondi on Oct 30th, 2026

Cheesecake Factory (NASDAQ:CAKE – Get Free Report) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks reports.

A number of other equities analysts have also recently issued reports on CAKE. Robert W. Baird upped their price objective on Cheesecake Factory from $105.00 to $120.00 and gave the stock a “neutral” rating in a report on Thursday, October 22nd. Bank of America boosted their target price on Cheesecake Factory from $66.00 to $79.00 and gave the stock a “neutral” rating in a research report on Thursday, July 2nd. Stephens reaffirmed an “equal weight” rating and issued a $100.00 target price on shares of Cheesecake Factory in a research note on Wednesday. JPMorgan Chase & Co. increased their price target on shares of Cheesecake Factory from $92.00 to $105.00 and gave the company a “neutral” rating in a research report on Wednesday, August 26th. Finally, Argus raised their target price on shares of Cheesecake Factory from $72.00 to $110.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $95.47.

View Our Latest Report on Cheesecake Factory

Cheesecake Factory Trading Up 7.0%

Shares of Cheesecake Factory stock opened at $113.12 on Wednesday. Cheesecake Factory has a 12-month low of $43.07 and a 12-month high of $118.63. The company has a market capitalization of $5.63 billion, a P/E ratio of 26.81, a price-to-earnings-growth ratio of 1.48 and a beta of 1.04. The company has a current ratio of 0.59, a quick ratio of 0.52 and a debt-to-equity ratio of 1.08. The stock has a fifty day simple moving average of $107.90 and a 200 day simple moving average of $79.42.

Cheesecake Factory (NASDAQ:CAKE – Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.06. The firm had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.01 billion. Cheesecake Factory had a net margin of 5.20% and a return on equity of 46.95%. The business’s quarterly revenue was up 13.9% on a year-over-year basis. During the same quarter last year, the company posted $0.66 EPS. On average, sell-side analysts anticipate that Cheesecake Factory will post 4.75 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, President David M. Gordon sold 31,950 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $110.03, for a total value of $3,515,458.50. Following the sale, the president directly owned 26,875 shares of the company’s stock, valued at $2,957,056.25. This represents a 54.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Janice L. Meyer sold 1,958 shares of Cheesecake Factory stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $109.36, for a total transaction of $214,126.88. Following the transaction, the director directly owned 21,251 shares of the company’s stock, valued at approximately $2,324,009.36. This trade represents a 8.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 131,176 shares of company stock worth $14,068,161 in the last ninety days. Insiders own 8.00% of the company’s stock.

Institutional Trading of Cheesecake Factory

A number of hedge funds have recently made changes to their positions in the stock. Trek Financial LLC purchased a new position in Cheesecake Factory during the third quarter valued at $1,464,000. Profund Advisors LLC bought a new stake in Cheesecake Factory in the third quarter worth $224,000. State of Wyoming increased its holdings in shares of Cheesecake Factory by 60.3% during the third quarter. State of Wyoming now owns 1,920 shares of the restaurant operator’s stock valued at $202,000 after acquiring an additional 722 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al increased its holdings in shares of Cheesecake Factory by 63.3% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 4,900 shares of the restaurant operator’s stock valued at $516,000 after acquiring an additional 1,900 shares in the last quarter. Finally, Choreo LLC raised its position in shares of Cheesecake Factory by 7.0% in the 3rd quarter. Choreo LLC now owns 7,173 shares of the restaurant operator’s stock worth $755,000 after purchasing an additional 472 shares during the last quarter. 94.48% of the stock is owned by institutional investors.

Key Cheesecake Factory News

Here are the key news stories impacting Cheesecake Factory this week:

Positive Sentiment: Strong traffic and earnings beat: Third-quarter revenue exceeded $1.033 billion, while flagship restaurant guest traffic increased 9.5%. CAKE reported $1.02 in EPS versus the $0.96 consensus estimate, and revenue grew 13.9% year over year. Cheesecake Factory: 3 Key Takeaways for Long-Term Investors
Positive Sentiment: Expansion supports the longer-term outlook: Management highlighted improving margins, strong traffic and plans to expand the Flower Child concept in 2027, although North Italia remains a challenge. CAKE Q3 Earnings Call Highlights Strong Traffic and 2027 Expansion
Positive Sentiment: Some analyst support remains: Citigroup maintained a Buy rating while trimming its price target slightly to $127, implying upside from the referenced price level. Citigroup stock recommendations
Neutral Sentiment: Dividend maintained: CAKE declared a $0.30-per-share quarterly dividend, or $1.20 annualized, with a stated yield of approximately 1.1%. The ex-dividend date is November 10.
Negative Sentiment: Valuation concerns are weighing on shares: Stephens reaffirmed an Equal Weight rating with a $100 target, while UBS maintained a Sell rating and an $80 target, arguing that the stock’s valuation is stretched. The move below the 50-day average followed an analyst downgrade. Cheesecake Factory stock crosses below 50 day moving average
Neutral Sentiment: Political attention is generating publicity but little direct financial impact: Multiple reports focused on Barack Obama’s jokes about the chain and the resulting political backlash. The coverage may increase brand visibility, but it does not change CAKE’s earnings outlook or fundamentals.

Cheesecake Factory Company Profile

(Get Free Report)

The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.

The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.